people are active about their financial management. Apart from this, it is also important to make children aware of financial planning. Children should often get used to saving money. A good habit can help a child avoid costly financial mistakes in later life.
Some important tips you can consider to develop good money habits for the child ..
Open a savings account
It is a good idea to open a savings account for children at an early age. It teaches them to read and analyze bank statements, which in turn helps them learn about the concept of savings and interest. In addition, some spending rules can be set, and some savings.
Explain the concept of setting goals
Parents can also introduce the concept of goal setting to their children. Instead of buying a toy or gadget, parents should encourage their child to save money regularly to buy a gadget. This helps them see the concept of investing in action. They start developing a habit of setting savings goals.
Tell us about the concept of money at a young age
When the child goes to a shop or market with parents, if they are exchanging money for goods or services, they learn the importance and value of money. Children need to understand how money works so that the concepts of savings and investment can be easily introduced later.
Teach how to save money
A child learns that money is needed to buy things. If the parents are deciding not to buy a particular product because it is not worth the money. Children often mimic the way they view their parents’ behavior.
Tell the children about the budget
The concept of pocket money also differs in most Indian households. In fact many parents like to give money to their children. This is the best way for children to start learning how to stay within budget.
